Coveo logo (CNW Group/Coveo Solutions Inc.)
A recent report by Coveo reveals that over 70% of consumers are willing to use generative AI (GenAI) tools for their holiday shopping this year, indicating a significant opportunity for retailers. Conducted in June 2025, the survey involved 6,000 adult consumers from the U.S., U.K., Australia, and New Zealand, and it highlights a growing demand for AI-powered shopping assistance.
The findings show that **85%** of Gen Z and Millennials are particularly enthusiastic about using GenAI shopping assistants, driven by their desire for better product comparisons and personalized gift recommendations. According to Coveo’s General Manager of Commerce, **Peter Curran**, the increasing interest reflects a shift in consumer behavior, as **72%** of respondents expressed openness to using GenAI guidance, with **35%** already having utilized it.
Despite this enthusiasm, the adoption of GenAI in retail remains slow. Last year, only **31%** of shoppers indicated they would consider using a virtual assistant for gift-buying, but this year that curiosity has skyrocketed to **63%**. The report underscores a disconnect between consumer readiness for AI and the pace at which retailers are implementing these technologies.
Consumer Insights and Stress Factors
The report also highlights that shoppers are feeling the pressure of holiday shopping, with **86%** expressing concerns related to the experience. Stress factors include budget constraints and the challenge of finding the “right” gift, particularly affecting younger shoppers—**96%** of Gen Z and **92%** of Millennials reported some level of stress. Despite these concerns, **73%** of consumers plan to give as much or more than last year, demonstrating a commitment to holiday gifting.
In terms of shopping behavior, **83%** of consumers plan to shop online, while **61%** will head to physical stores. Additionally, **44%** intend to split their purchases between both channels, highlighting the importance of a seamless omnichannel experience. The report reveals that **34%** of shoppers initiate their gift searches via search engines, while another **34%** start on retailer websites, underscoring the necessity for relevant and efficient search capabilities.
Black Friday and Consumer Spending Trends
The report also indicates that **88%** of global shoppers intend to participate in Black Friday and Cyber Monday (BFCM) sales, with **91%** of U.S. consumers planning to take part. This shopping period remains crucial for retailers, setting expectations for pricing and promotional strategies. As **66%** of shoppers cite cost as a primary factor influencing their brand choices, retailers must adapt their offerings to meet these financial considerations.
Personalized gifts emerged as the most sought-after category, with **38%** of shoppers indicating a preference for custom or unique items. This trend reflects a desire for thoughtful and meaningful presents, further emphasizing the need for retailers to leverage GenAI technologies to enhance customer engagement and satisfaction.
Coveo’s report clearly indicates that while consumers are eager to integrate GenAI into their holiday shopping experiences, retailers face a critical juncture. By embracing these technologies, they can alleviate shopper stress, differentiate themselves in a competitive marketplace, and ultimately drive higher conversion rates this holiday season.
